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There’s the “yank-down,” where a scammer pulls an item from a high store shelf and claims to be injured. There’s also the “swoop and squat,” where a driver intentionally gets rear-ended. And don’t forget the “chew and sue,” where a con artist puts an object such as a glass shard or an insect into a restaurant meal and tries to profit.

Kate Gordon Ronan, national coordinating counsel for Liberty Mutual’s Special Investigations Unit, is passionate about fraud protection and defending companies. Small business owners, she said, can take simple steps to detect or, better yet, prevent fraud.

“People often think insurance fraud is a victimless crime — and it’s really not,” Gordon Ronan said. “It impacts every single person and every company.”

The vast majority of claims are legitimate, she said. Still, insurance fraud amounts to at least $80 billion a year, according to the Coalition Against Insurance Fraud. Property and casualty schemes make up a large portion of the problem, at $32 billion a year, according to the Insurance Information Institute. In fact, about 10 percent of property and casualty claims annually are fraudulent.

The result: higher premiums for everyone.

Criminals often see small businesses as easy marks, said Gordon Ronan, who started doing special investigations work for the Boston-based Liberty Mutual Insurance in 1996.

“Unfortunately,” she said, “those committing fraud will attempt it where they think they can get away with it.”

Small to mid-sized businesses don’t often have full-time risk managers, and they might not have the resources or knowledge to notice red flags.

Company vehicles are sometimes chosen for the “swoop and squat” because they’re likely to be well insured. Unscrupulous law firms and medical providers sometimes enter the picture after a supposed accident.

Slips, trips and falls are among the most common accident claims — both real and false — throughout the U.S.

Gordon Ronan recommends communicating with your insurance company to learn the most common risks for your industry and develop a plan for fighting fraud. She also said it’s important to make clear to anyone watching that you’re paying attention.

“If you have a small restaurant and fraudsters see that a piece of salad is dropped and stays there for a long time, they know your business is ripe for fraud,” she said. “They need to see that you have an established routine, that any spills are cleaned up right away, that the manager will be right there.”

Also, she said, have procedures ready for when a fall or other incident occurs, and make sure that employees know them. Document what happens, whether the police or an ambulance are called, and any surrounding details — even what shoes the person is wearing. Take pictures of the scene, if possible.

Remember, by the time any litigation begins, the managers and other employees present might have changed locations or jobs. The more information you can provide your insurance company, the higher the chance of identifying and combating fraud.

Employees “need to know that their boss does not tolerate fraud,” Gordon Ronan said, “and they should know about any identified risk areas in the business.”

If a particular location within your business is at risk, she said, it might be time for greater scrutiny as to what is causing losses.

Gordon Ronan also advises appointing one person to deal with all claims and communicate with the insurance company. With a scattershot approach, it’s easy to miss patterns — such as a cluster of accidents in the same place or at the same time of day — that could indicate either legitimate risks or fraud. It’s wise not only to keep an eye on current claims but also to review past cases.

Other potentially suspicious signs, especially if they show up repeatedly, include accidents with no witnesses, victims being represented right away by an attorney, and immediate requests to settle for small amounts.

“It’s very invigorating for me to work with a talented, specialized group of people to catch fraudsters victimizing unsuspecting businesses,” she said.

James Ritchie is a journalist living in the Greensboro, N.C., area. He was a reporter for the Business Courier in Cincinnati for eight years, covering health care, technology and Procter & Gamble. He has a bachelor's degree from the University of Kentucky.

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